FTB to let to students while continuing to rent elsewhere??

kingofcosby

Hi

I am looking to buy a student property to let out straight away. i am a 1st time buyer and do not currently have a mortgage.

I understand i will need a residenial mortgage on my 1st property, however, am i still allowed to rent out the property whilst contunuing to rent elsewhere??

Will there be any implications if 3 years down the line i choose to buy my 1st "home" and will therefore need to change this one to BTL mortgage??

Are there any other implications i need to consider apart from all the usual house purchasing stuff??

Thanks

DawnW

You do not necessarily need a residential mortgage on your first property. It will depend on your circumstances. Speak to a whole of market, fees free advisor, as I did. The deals you get offered will be dependent on your circumstances, ie credit rating, how much deposit etc.

silvercar

You can't apply for a residential mortgage if you intend letting the property, to do so would be fraud.

You will have problems finding a lender to agree a BTL mortgage to a non-home owner; I think there are only a couple of lenders that will do this.

Minimum 15% deposit for BTL and rental to well cover the mortgage payments.

PasturesNew

You'll also need one that's already got HMO approval - and time it all right for when students start looking/booking accommodation. Miss the boat and you'll be paying for it while it's sat empty.

Guy_Montag

Careful where you buy - my local university has just opened a lot of new accomodation leading to a significant oversupply of private student lets.

kingofcosby

Thanks guys.

The reason this has come about is that i have the opportunity to do a deal as part of a larger deal (although all independent) through my directors - although directly with the selling company.

Just to clarify... if i am not planning on living in the house then it MUST be a buy to let mortgage??

PasturesNew

Ah. So that good old mortgage fraud that the lenders are keen to spot these days.

You do know you can go to prison for fraud don't you?

SouthCoast

If it looks too good to be true...................

PasturesNew

I see you edited out your fradulent details

Personally, from what you originally posted, I'd not touch it with a bargepole.

It read to me like somebody saw you coming and they're going to do you up like a kipper...

kingofcosby

Thanks for the prison "tip".

I dont really fancy prison, so therefore i must either get a by to let mortgage, or live it myself as a residential??

kingofcosby

Thanks pastures new. it is what i originally suspected and now i have a few 2nd opinions on it that is fine.

in regards to someone seeing me coming, do you think i would as questions as clear as that on here........not quite a kipper yet.

thanks for the comments.